Yahoo ordered to pay $2.7 billion in Mexican lawsuit
A worker moves a section of a Yahoo! billboard onto a truck in San Francisco, California. The company has seen its first resignation in the wake of the scandal over CEO Scott Thompson’s botched academic record: board director Patti Hart.
Yahoo said a Mexican court has ordered it to pay $2.7 billion to Worldwide Directories SA and Ideas Interactivas SA, which claimed a breach of contract related to a yellow-pages listings service.
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Worldwide Directories and Ideas Interactivas had accused Yahoo and its subsidiary Yahoo de Mexico SA of breach of contract, breach of promise and lost profits stemming from yellow-pages listings contracts, reported NASDAQ. Yahoo has said the claims are without merit and plans to appeal.
In a statement on its website, Yahoo said the 49th Civil Court of the Federal District of Mexico City had "entered a non-final judgment of US $2.7 billion against Yahoo! Inc. and Yahoo de Mexico."
The company's most recently reported quarter said it only generated $1.2 billion in revenue, according to CNet.
Yahoo shares fell by 1.4 percent in after-the-bell trading following the release of the news, noted BBC.
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